IMPACT OF REMITANCES ON THE SOCIO-ECONOMIC CONDITIONS OF RURAL FAMILIES IN DISTRICT POONCH OF AZAD JAMMU AND KASHMIR

The aim of the present study was to analyze the impact of remittances on the socio-economic conditions of rural families of district Poonch of Azad Jammu and Kashmir (AJK). For this purpose the data were collected during December 2008, from the two purposively selected villages i.e. Pachiot Sharqi and Pakkar of AJ K. Hundred households were randomly selected as sample households. Findings of the study revealed that the main source of income in the area was remittances. Before emigration the incomes of people were very low, which significantly improved after emigration, savings of people become many fold higher, expenditure on their basic needs, ceremonies and luxury items significantly increased. Due to increase in incomes after emigration the respondents preferred to educate their children in private educational institutions. As a result of remittances, respondents’ families spent income on the purchase of commercial plots, repaid their debts, constructed and renewed their houses, purchased more vehicles and started new businesses in the area. Respondents’ families were satisfied with their present financial status and preferred emigration for their children in future for earning purpose. Few negative impacts including psychological disorders in women, insecurity feelings and children drop-out from schools have also been reported in the area. The overall impact on living standard, outlook, financial position, status of respondent families in the area was found significantly high. The study recommends that for better utilization of the remittances proper training is required of the left over family members so that the investment may be made in such a way to generate employment in the area.